1031 a condo from out of state into something in DC

[Aubrey P.]

I own a ski condo in Colorado, which generally breaks even as a rental or cashflows a little, but is more for family skiing than anything else. That said I think it’s more advantageous to sell and invest in another property where I can get cash flow. Also, other condos on the same floor as my place in Colorado are selling for $600-650K.

I moved to Washington DC and would like ideas generally on 1031 exchanges and investing in the area. I'm open to small commercial properties under $1.2M, multifamily properties, or a nice rowhouse, within the city in areas like Capitol Hill, U Street area, Tenley, AU Park etc, or close in exurbs (Arlington, etc.) to rent out. It's very hard to find a multifamily in a decent areas in DC proper. I could look to Ward 7 or 8  to upcoming areas that may include the advantages of an Opportunity Zone property...but I'd rather stay in a more desirable location like what I mentioned previously. I know people are buying and building in Deanwood and some of the historically more dangerous areas. Even historic Anacostia is undergoing huge development. Maybe I could buy and sit on a commercial property there?

Anyone have any good ideas? It ain't 1982 anymore and you're not going to find a rowhouse on the Hill for $50K, but any input is helpful. Maybe a condo to rent?

[Christopher B.]

I absolutely agree with both @Russell Brazil and @Account Closed.  The benefit of the area is the large population of federal employees, lobbyists, law firms, etc.  It's reasonable to say the market is somewhat "insulated" relative to many other markets in the country.  I wish I could be more on board with areas like Deanwood, but, having lived in the metro area, I can't.  As I look at properties -- and I look every day -- I still tend to follow a simple rule: If I would not live there myself, I don't bother.  I'm not saying that philosophy is right for everyone, but if you wouldn't live there yourself or wouldn't feel comfortable having your children running around in the area, that's pretty telling as far as I'm concerned.  It also speaks to potential issues with tenants in the future.